Great Depression Flashcards
What is Black Tuesday?
When the stock market crashed
What is buying on the margin?
Borrowing money (credit) to purchase stocks
What is the New Deal?
FDR wanted to provide relief, recovery and reform
What is a bank run?
customers withdrew all of their money out of the banks
Who is Huey Long?
A US senate to follow his promises of radical redistribution of wealth
What is the Hawley-Smoot Tariff Act
Raised tariffs (taxes) on US imports up to 50%
What is interdependence?
Division of labor. A reliance on another to produce goods and services needed
What are Hoovervilles?
A “town” that people built
that didn’t protect them just like Hoover
What is the Business Cycle?
Series of expanding and contracting economic activity
What is the FDIC?
Federal Deposit Insurance Companies. Insured that if the banks closed they are guaranteed some money back
What is Social Security?
Established to provide help to the older/retired Americans with a source of income
What is the Dust Bowl?
Dry dirt that covered a lot of the southern area
What are Okies?
People who headed for California due to the dust bowl
What is Court Packing Bill?
FDR wanted to add 6 judges to supreme court
Who is Hebert Hoover?
The president during the Great Depression
What are the 3 R’s
Relief
Recovery
Reform
What is the TVA?
Tennessee Valley Authority: built dams that modernized and gave people jobs/electricity
What is an Economic Indicator
statistic about economic activity analysis to predict future Business cycles
What is the CCC?
Civilian Conversation Corps: employed young men to work on environmental projects
How did the 1920s and 1930s differ?
in the 1920s the stock market peaked, employment rate was high
In the 1930s the stock market crashed and employment rate dropped
What were the causes/effects of the Stock Market crash?
Causes:
Overproduction
Banking/money policies
Stock market practices
Effects: Hunger Homelessness Unemployment Charity/public assistance
what was the effect or impact of the numerous bank runs following Black Tuesday
Effect: tons of banks closed
Impact: major debt among Americans who lost all of their savings
Why did farmers suffer hard economic times?
The farmers suffered the longest drought in the US history which meant they couldn’t produce food to make money
how did agricultural practices contribute to the dust bowl?
they didn’t rotate the farms so the land/soil became dry and when the wind came it picked up the dry dirt
how were minorities affected by the great depression?
they were the first to lose their jobs and it was harder to get it back. the violence began against them
what was the difference between President Hoover’s and Roosevelt’s views on the role of the federal government?
Hoover: believed that less government help was better and people had had to figure it out themselves
FDR: believed government involvement was much needed to help
what were the similarities and differences between the experiences of urban and rural Americans?
Rural: dust bowl, Okies
urban: bread/soup finds
same: no money, hunger, no houses, no jobs
what were the causes of the Great Depression?
- overproduction/underconsumption
- banking and money policies
- stock market actions
- political decisions
what were some of the affects of the great depression? Give examples
- homelessness – the jockey in the video lost farmland and had to move place to place looking for a job
- hunger – people had to make food from the yard like the salad video
- unemployment – 25% unemployed
- charity/public assistance- soup lines out on the streets
what are some examples of relief, recovery and reform provided by the new deal? give examples
Relief: NLRB was to give opportunities to assist companies and enforce Wagner act
Recovery: FDIC was to stabilize banking systems and limit their freedom
reform: TVA was to provide flood control and hydroelectric power, battled erosion and deforestation
based on evidence to we looked at in class would you consider the new deal successful? Why?
successful because it created more jobs and also changed the government like added the Social Security act and created more organizations
what is the legacy of the great depression?
created long term organizations like the FDIC and SSA. Also there’s more government involvement and protected organizations of labor. the presidential power was increased and first lady started getting more involved
